Why Tether Buys Gold: 116 Tonnes Added as Prices Jump 50% in 2025

Tether Buys Gold: Surpasses Korea and Hungary, Hits 116 & 26 Ton in Q3

The swiftly growing gold acquisitions and strategic investments of Tether have redefined the demand for bullion in the year 2025 and made the issuer of stablecoins one of the largest non-central bank holders in the world, with increasing market power.

Tether Buys Gold: Becomes a Major Global Holder

• Tether currently contains 116 tonnes, as Jefferies notes, and is equal to the central banks of South Korea (104 tonnes) and Hungary (94 tonnes). 

• This renders Tether as one of the biggest holders not under sovereign organizations. 

• The investment accounts for about 7% of the company's total reserves, reflecting a more diversified reserve policy.

• The price has increased over 50% since the beginning of the year and is now selling at around $4,080 to $4,100 per ounce. 

• Analysts say institutional demand—including aggressive accumulation—has contributed to tightening supply during a year of heightened macroeconomic uncertainty.

Source: Kashif X

Q3 Purchases Accounted for 2% of Global Gold Demand

Tether Q3 2025 added 26 tonnes of bullion, which is 2% of the global quarterly gold demand, according to World Golds Council data, and 12% of central bank purchases. Jefferies notes the buying spree likely influenced short-term supply and strengthened bullish sentiment among speculative traders.

CEO Paolo Ardoino has publicly endorsed expanding traditional asset exposure. With the company projected to generate $15 billion in 2025 profit, analysts estimate the company could add 50–60 tonnes per year without affecting liquidity or operations.

Tether Expands Across the Gold Supply Chain

Beyond this, the company invested over $300 million this year in precious-metal companies. In June, it acquired a 32% stake in Elemental Altus Royalties, a Canadian public royalty firm, exposure to mining-linked revenue, and exploratory investments in refining and trading companies. The strategy of the company demonstrates a more general move to make a vertically integrated ecosystem.

Recent reports also show that it is considering investing in mining, refining, trading, and royalty business, which will be a step towards further diversification of reserves and further penetration of precious metals.

Demand for Tokenized Gold Increases

The XAUt token has increased its issuance twice in the last six months. Blockchain data shows the company added 275,000 ounces (about $1.1 billion) since August. It also argues that tokenized bullion overcomes issues like storage, ETF fees, and settlement friction.

Tether’s Central Bank–Like Operations

This now mirrors several central bank functions: 

• Minting and redeeming USDT

• Managing a large reserve portfolio

• Earning interest from U.S. Treasurys

• Using policy tools such as wallet freezes when required by law enforcement.

Conclusion

The accumulating Tether reserves are a crucial change in its asset policy, and its increasing influence is affecting the demand in the world and making the issuer of the stablecoin look more like a central bank.